Ark Invest fund bought up $6 million worth of GM stock

Katie Wood’s flagship fund Ark Invest on Monday bought 158,187 shares of General Motors, a traditional car company that markets electric vehicles, for more than $6 million, marking her first stake in the auto giant, Business Insider reports.

It marks a change of heart for Wood, who said older automakers “don’t have the DNA to innovate in this wondrous new world, given that they were born in the industrial age and run on gas.”

The exchange-traded fund Ark Autonomous Tech. & Robotics (ARKQ) bought 158,187 shares of GM stock, according to an update on the company. The shares are worth $6.05 million, based on the auto giant’s closing price of $38.26 on Monday, and so far they represent less than 1% of ARKQ’s portfolio.

Ark is known for investing in cutting-edge technology companies like Tesla and Zoom, and its first stake in GM reflects an interest in the future of electric cars. GM itself, which previously made gas-powered cars, plans to get serious about electric vehicles and has pledged to spend $35 billion on electric and unmanned vehicles by 2025.

It looks like Katie Wood is ready to take back what she said about the old automaker: back in April, she said she was open-minded about investing in GM after meeting with its CEO Mary Barra.

CEO Ark is known to be a longtime supporter of Tesla, which GM wants to overtake in electric vehicles, and, she said, “confidence in Tesla remains the highest.” Noting that the Elon Musk-led company is the only one to have developed its own AI chip, she remains optimistic about its stock, setting a target price of $4600 by 2026.

However, on Monday, 2 other Ark funds – Ark Innovation (ARKK) and Ark Next Generation Internet (ARKW) – reduced their stake in Tesla by 41,754 shares. But Tesla is still the second-largest holding in Ark’s portfolios.


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